Family business succession is a vast topic in itself. However, the basic principles for an SME in Ireland are simple enough and looks something like this. Generation 2 should expect to be able to buy the business from generation 1 for a fee which is a discounted independently arrived at valuation of the business. This money should be sufficient to fund the retirement needs of generation 1. A point in time whereby control and ownership transition needs to be determined and agreed by all parties. That agreement should recognise that it is unfair to lumber generation 2 with the debt cost of funding generation 1’s retirement unless they are granted full control of the business. Equally, it is neither fair nor reasonable for generation 1 to have generation 2 take on the business at a discounted valuation unless a transitionary stage timeline is agreed where all parties agree on how the business is run. An experienced business advisor will help structure this process and assist all parties to the successful conclusion of the transition.